[Graeme]

I'm posting this in the hope that the o/g industry will help boost renewable growth and reduce emissions while securing their business for the long-term future. I suspect that we will need their investment in renewables if we have any hope of drastically reducing emissions. But as we have seen recently, Exxon pledges to continue with bau so I doubt whether this marriage will work. However, the Pembrook Institute brought reps from the two parties together last year. Here is what they discussed.

When Renewables Meet the Oil and Gas Industry, Opposites Attract

The chemistry between oil and gas companies and renewables ventures is likely to continue to ebb and flow with the economics and politics of the times. Yet believing these two industries have tremendous opportunity for synergy, the Pembina Institute brought a group of leading oil and gas companies together with renewable energy industry advocates last year. The objective was to better understand the dynamics at play, and to help advance the integration of renewable energy opportunities into decisions made by the oil and gas companies.

Every relationship has hang-ups, and we uncovered some significant barriers in our research and discussions, including:

Challenging economics, stemming from low natural gas prices and the comparatively high capital costs of renewable energy, coupled with comparatively low rates of return for renewable power projects;

The lack of national political effort on climate change and renewables, including the absence of a meaningful carbon price;

A lack of renewable energy literacy among oil and gas engineers, encompassing both technology and current economics; and

Ad hoc and personality-driven approaches to renewable energy project development, including shifting commitment among senior corporate leadership.

Our research found many instances where renewable energy technologies are already economic for oil and gas, particularly when competing against expensive diesel- or propane-based power in off-grid applications. For this reason, a host of on-site renewable energy ‘wins’ remain largely untapped by the oil companies. Scaling these up could transform both sectors for the better.

renewableenergyworld